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Facts
The assessee appealed against assessment orders passed under Section 147 read with Section 144 & 144B of the Income-tax Act for Assessment Years 2013-14 and 2016-17. The assessee claimed non-receipt of notices due to communication issues, leading to ex-parte orders at both the Assessing Officer (AO) and Commissioner of Income-Tax (Appeals) (CIT(A)) levels.
Held
The Tribunal, considering the principles of natural justice and fair play, decided to remand the matters back to the AO for fresh adjudication. This was done to provide the assessee an opportunity to be heard, without causing prejudice to the revenue, subject to payment of costs.
Key Issues
Whether proper opportunity of hearing was afforded to the assessee before passing ex-parte assessment and appellate orders, and if the matter should be remanded for fresh adjudication.
Sections Cited
147, 144, 144B
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
The captioned two (2) appeals have been filed by assessee challenging two (2) separate orders of first-appeal, both dated 26.01.2025 and passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”], which in turn arise out of respective assessment-orders dated 08.05.2023 & 30.05.2023 passed by learned Assessment Unit of Income-tax Department [“AO”] u/s 147 r.w.s. 144 &144B of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2013-14 & 2016-17 respectively.
Page 1 of 4 Samta Devcon Pvt. Ltd. & 259/Ind/2025 - AY 2013-14 & 2016-17
Learned Representatives of both sides are ad idem that the underlying facts and issues of both appeals are similar. Therefore, in the discussions to follow, the facts of AY 2013-14 are referred and the adjudication made therein shall apply mutatis mutandis to AY 2016-17.
Ld. AR for assessee submitted that the AO has passed assessment- order u/s 144 for non-prosecution by assessee but the notices were sent by AO through email to vikas459jain@yahoo.com which did not reach to assessee. He further submitted that although the AO has mentioned “Further a physical letter has also been issued through India Speed Post on 10.04.2023, however assessee has not furnished any reply till date” in assessment-order but the AO has not mentioned the details/number of speed post so as to enable the assessee to track the status. Ld. AR, however, stressed in open court that the assessee did not receive any such speed post.
Ld. AR thereafter submitted that the order of first-appeal is also ex-parte as the CIT(A) has served notices of hearing through e-mail only [Para No. 4 of CIT(A)’s order] and that too within a short period from 17.10.2024 to 20.12.2024 which could not be attended by assessee. Therefore, the non- representation before lower authorities occurred. Ld. AR, however, acknowledges that the assessee is ready and willing to make a proper representation before AO if an opportunity is given and hence prays that the present matter should be remanded to AO for an apt adjudication.
Ld. DR for revenue submitted that the assessee has remained non- complaint before both of the lower authorities. He pointed out that the Page 2 of 4 & 259/Ind/2025 - AY 2013-14 & 2016-17 assessee has filed first-appeal to CIT(A) as well as the present appeal to ITAT in time. Therefore, in the situation, if the bench remits these matters to AO for a fresh adjudication, a suitable cost must be imposed upon assessee and also the assessee must be given stricter directions.
We have considered submissions of both sides and perused the orders of lower authorities. Having regard to the facts as narrated; the principle of natural justice and fair play and also bearing in mind that no prejudice would be caused to revenue if the present matters are restored at the level of AO, we remand these matters back to the file of AO for adjudication afresh, at the risk and responsibility of assessee and subject to payment of a cost of Rs. 10,000/- per case by assessee to Income-tax Department through a suitable challan. The assessee shall submit copy of duly paid challans to the AO during proceedings. The AO shall give necessary opportunity of hearing to assessee and pass appropriate orders uninfluenced by his earlier orders. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by AO and do not seek unnecessary adjournments failing which the AO shall be at liberty to pass appropriate orders in accordance with law. Ordered accordingly.
Page 3 of 4 Samta Devcon Pvt. Ltd. & 259/Ind/2025 - AY 2013-14 & 2016-17
Resultantly, these appeals are allowed for statistical purpose, subject to payment of cost by assessee as mentioned above.
Order pronounced in open court on 06.02.2026.